Input tax credit denial cannot stand where material evidence was ignored and remand was required for fresh consideration.

Non-consideration of material documents and evidence rendered the denial of input tax credit unsustainable where the appellate authority and Tribunal proceeded on the mistaken assumption that no such material had been produced. The High Court treated that omission as an error apparent on the face of the record and a failure to apply mind to the factual basis of the tax-credit claim. The impugned appellate orders were set aside, and the matter was remanded to the First Appellate Authority for fresh consideration in accordance with law.

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Issues: Whether the appellate order denying input tax credit was vitiated by non-consideration of material documents and evidence, warranting interference and remand.

Analysis: The assessee had produced additional statements and documents, including particulars said to be relevant for determining the eligibility to input tax credit. The appellate authority and the Tribunal proceeded on the assumption that such material had not been produced and therefore did not examine the claim on the basis of the available record. The omission to consider the material placed before them amounted to an error apparent on the face of the record and non-application of mind. The impugned orders could not be sustained when the factual foundation for deciding the tax-credit claim had not been properly examined.

Conclusion: The issue was answered in favour of the assessee. The impugned appellate orders were set aside and the matter was remanded to the First Appellate Authority for fresh consideration in accordance with law.

Ratio Decidendi: An order denying tax relief is unsustainable where the authority fails to consider material documents already produced and decides the matter on an erroneous assumption that no such material exists; in such cases, remand for fresh adjudication is warranted.

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